Dividend Capital’s Commercial Real Estate Cycles for Q1 2013

Dr. Glenn Mueller at Dividend Capital quarterly posts an analysis of the where commercial markets are in four phases commencing at Recovery, then Expansion, Hypersupply and finally Recession. His analysis includes five major commercial property types (Office, Industrial, Apartments, Retail and Hotels) and coverage across more than 50 Metropolitan Statistical Areas (MSAs). Dividend Capital is a full-service investment company focused on developing and managing real estate products.

As of the first quarter, his finding for annualized rent increases follow. For Hotels, it is RevPAR, or Revenue Per Available Room, which is calculated by multiplying the average daily rate times the occupancy rate.

The latest 12 months change in rental revenues includes:

Office                                 +1.4 Percent
Industrial                          +2.4 Percent
Apartments                      +3.4 Percent
Retail                                 -0.2 Percent
Hotel                                 +8.8 Percent RevPAR

Dr. Mueller’s fundamental work in this field allows a quick market comparison across multiple commercial property types spanning more than 50 MSAs.

To obtain a copy of the report click here.

If you have never read the report from Dividend Capital, I encourage you to do so.


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